Solar has seen a rapid growth in the past decade. Many big power companies have consciously invested in it due to increasing interest in clean energy and sustainable infrastructure. This has also enabled fast technology growth in the sector with leaps and bounds advancement in panels, inverters, other devices and monitoring software.
As more companies are investing in the sector, many of them need assistance in the buying process as they are not able to evaluate the functional and financial aspects of the asset. This is where Technical Due Diligence comes into picture.
In solar technical due diligence, the buyer and the owner agree on an independent third party to assess the technical risk of a renewable energy asset. An on and off site review is done to evaluate the entire lifecycle of the asset so that a sound investment decision can be made. The technical due diligence is broadly divided into two asset types:
Due Diligence for Existing Assets
Generally, on-site visits are required to review the external plant and equipment conditions of an asset, this includes checking the mechanical, structural and electrical design of the plant. The operations and maintenance (O&M) practices and implementations are also reviewed including an evaluation of any major health, safety and environmental incidents that have occured.
Performance of the asset is judged on its historical and current generation data. Key considerations include production, availability, energy dispatch to the grid, weather/environmental as well as forced outages, major repairs and unforeseen maintenance. The power purchase agreement dictates the commercial terms by the plant facility with respect to performance, power tariff, energy sales and interconnection to the power utility grid.
Due Diligence for New-build Investment
A review of the conceptual design is required with respect to proposed technologies, viabilities and general process design of the main plant as well as the off site infrastructure to ensure that the plant design meets the industrial standards. Visit to the project site is required to assess the site characteristics and environmental situations. Additional site monitoring is done during construction to overlook the complete process.
Teqo’s Technical Due Diligence
Our long term experience and association with finance, business and law has given us the expertise required to provide maximum support during buying, selling or financing RE projects. We make sure that the stakeholders involved have a clear and comprehensive understanding of the risks and opportunities associated with the project. The core objectives of our technical due diligence services are:
1. Identify potential risks and provide valuable insights
2. Ensure bankability and feasibility of solar projects
Our Technical Due Diligence team is not only technically competent, but also has reputable businesses with proven track records that are likely to continue operating in the region throughout the lifetime of the project.
Each of our Technical Due Diligence is customized according to the renewable project be it solar or wind, technical features, and each client needs.
1. Energy Yield/Resources Estimate
2. System Design and Technology Review
3. Economic Analysis
4. Review of Operational Data for the operating assets
5. Review of Under-Construction assets
6. Contractual Management
7. Site Testing Services
8. Project Site Visits
Through our technical due diligence services, we believe in supporting the owners or investors in making the best investment decision possible.
For more details call us on the Teqo Care No. 1860 2663 911
Source –
https://www.nexant.com/resources/due-diligence-solar-wind-energy-assets
https://www.mahindrateqo.com/services/technical-due-diligence/
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